Sam Bankman-Fried, the founder of the FTX empire, was arrested two days ago. He could be extradited to the United States, and 8 charges are brought against him. The ex-CEO of the platform is very risky. What prison sentence could apply? We take stock.
FTX case – What is the risk of Sam Bankman-Fried?
Sam Bankman-Fried, the founder of the FTX empire, was arrested two days ago. He could be extradited to the United States, and 8 charges are brought against him. The ex-CEO of the platform is very risky. What prison sentence could apply? We take stock.
Upcoming trial for Sam Bankman-Fried
While the revelations have been linked for several weeks, the accusations have also accumulated for Sam Bankman-Fried. As a reminder, several charges have so far been brought against the ex-CEO of FTX, and multiple departments are leading the charge :
- The United States Department of Justice charges Sam Bankman-Fried with conspiracy for several types of fraud, money laundering, among other counts
- The Security and Exchange Commission (SEC) charges him with several types of securities fraud
If we go by the accusations of the Ministry of Justice, Sam Bankman-Fried risks a total of 115 years in prisonnot. As a reminder, there is no maximum time limit in the United States, so prison sentences can accumulate without it being transformed into a life sentence.
These 115 years represent the maximum possible sentence. In the facts, the ex-CEO could be off the hookaccording to several sources.
👉 To go further – FTX: the answers to all your questions about the affair that is shaking cryptocurrencies
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10 years in prison for the ex-CEO of FTX?
According to Nick Akerman, a lawyer interviewed by our colleagues at TIME, Sam Bankman-Fried could receive “only” ten years in prison. This is a common sentence in this type of case. But the sums involved, and the media coverage of the case, could well see this figure climb. Indeed, Sam Bankman-Fried is accused of having organized a fraud amounting to several million dollars, which extended over several years. The repercussions in terms of trust placed in crypto companies are also particularly powerful.
Sam Bankman-Fried could therefore receive a sentence well over ten years in prison. This is also the opinion of Yesha Yadav, professor at Vanderbilt University. She believes that lawmakers “are under strong pressure to change things», and that the case of Sam Bankman-Fried could represent a precedent.
In any case, his arrest comes to close weeks of doubts, where Sam Bankman-Fried appeared to be strangely unreachable. The ex-CEO should in any case prepare a particularly solid defense. Both of his parents are indeed law professors at Stanford University, and they both showed their support in early proceedings including current CEO John Ray III.
The latter recently revealed the extent of what appears to be amateurism on the part of the FTX teams. He said in a hearing:
“FTX’s Collapse Comes from Concentrating Absolute Control in the Hands of a small group of absolutely inexperienced and naive individualswhich failed to implement the most basic control systems, which are necessary for a business entrusted with money.»
👉 Learn more about it – “Unacceptable managerial practices” – New revelations about the inner workings of FTX
Source: TIME
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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